The Melbourne-based company supplied pipes worth about $232,600 to Iraq’s oil ministry in 2001.

The Volker report into corruption of the oil-for-food program, commissioned by the United Nations, found Rhine Ruhr may have unwittingly paid around $28,400 through a 10% “after sales service fee” levied by the Iraqi government.

Despite the UN banning the practice, the fees were often added to contracts by Iraqi officials and kept by the government.

Then-managing director Bruce Thurgood told the inquiry he was never suspicious about the payments and that Rhine Ruhr had “accepted that this was the system for doing business with Iraq”.

The inquiry’s head, Terence Cole, QC, yesterday cleared Rhine Ruhr of any wrongdoing in relation to the Iraqi kickbacks scandal.

The commissioner said there was insufficient evidence to show Thurgood knew the payment of the fee was a bribe or kickback.